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Bullish Pattern Could Send Gold Prices Much Higher

Published 06/03/2022, 02:09 PM
Updated 07/09/2023, 06:31 AM
XAU/USD
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GC
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Gold-U.S. Dollar Ratio Monthly Chart.

Gold prices and precious metals bulls have been biding their time.

While gold has traded sideways-to-lower, bullish investors have simple sat tight, waiting for a bigger move.

I have shared today’s chart pattern several times (read this article from over a year ago), but it seems important to update once again as we ask the question, “Is a big move nearing?”

Above is a long-term monthly chart of the gold-U.S. dollar ratio.

After a sharp rise into 2011, this gold ratio declined sharply over several years before bottoming and rising sharply into 2020. This formed a bullish “cup” pattern. And it appears the past 18 months may have formed the “handle.”

A bullish reversal pattern could be in play as gold attempts to hold on to near-term support. Metals bulls sure would like to see a rally start right here! Stay tuned.

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